Comparing Sirius XM (NASDAQ:SIRI) and AMC Networks (NASDAQ:AMCX)

AMC Networks (NASDAQ:AMCX) and Sirius XM (NASDAQ:SIRI) are both consumer discretionary companies, but which is the better investment? We will contrast the two businesses based on the strength of their institutional ownership, profitability, earnings, valuation, risk, dividends and analyst recommendations.

Earnings & Valuation

This table compares AMC Networks and Sirius XM”s revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
AMC Networks	$2.42 billion	0.11	-$226.55 million	($5.94)	-1.01
Sirius XM	$8.70 billion	0.87	-$1.67 billion	($6.52)	-3.44

AMC Networks has higher earnings, but lower revenue than Sirius XM. Sirius XM is trading at a lower price-to-earnings ratio than AMC Networks, indicating that it is currently the more affordable of the two stocks.

Insider & Institutional Ownership

78.5% of AMC Networks shares are owned by institutional investors. Comparatively, 10.7% of Sirius XM shares are owned by institutional investors. 15.6% of AMC Networks shares are owned by insiders. Comparatively, 3.3% of Sirius XM shares are owned by insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a company is poised for long-term growth.

Risk & Volatility

AMC Networks has a beta of 1.38, meaning that its stock price is 38% more volatile than the S&P 500. Comparatively, Sirius XM has a beta of 0.91, meaning that its stock price is 9% less volatile than the S&P 500.

Profitability

This table compares AMC Networks and Sirius XM’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
AMC Networks	-10.68%	17.26%	3.79%
Sirius XM	-25.00%	6.77%	2.25%

Analyst Recommendations

This is a breakdown of recent ratings and recommmendations for AMC Networks and Sirius XM, as provided by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
AMC Networks	4	0	0	1	1.60
Sirius XM	5	3	4	1	2.08

AMC Networks presently has a consensus target price of $5.38, indicating a potential downside of 10.12%. Sirius XM has a consensus target price of $26.17, indicating a potential upside of 16.56%. Given Sirius XM’s stronger consensus rating and higher possible upside, analysts plainly believe Sirius XM is more favorable than AMC Networks.

Summary

AMC Networks beats Sirius XM on 9 of the 14 factors compared between the two stocks.

About AMC Networks

AMC Networks Inc., an entertainment company, owns and operates a suite of video entertainment products that are delivered to audiences, a platform to distributors, and advertisers in the United States, Europe, and internationally. The company operates through Domestic Operations, and International and Other segments. The Domestic Operations segment operates various national programming networks, including the AMC, We tv, BBC AMERICA, IFC, and SundanceTV; provides subscription streaming services comprising Acorn TV, Shudder, Sundance Now, ALLBLK, and HIDIVE, as well as AMC+ and other streaming initiatives; and engages in film distribution business under the IFC Films, RLJ Entertainment Films, and Shudder name. This segment also produces and licenses original programming for various programming networks, as well as services the programming networks. The International and Other segment operates a portfolio of channels under the AMCNI name; and production and comedy venues activities under the Levity name. AMC Networks Inc. was founded in 1980 and is headquartered in New York, New York.

About Sirius XM

Sirius XM Holdings Inc. operates as an audio entertainment company in North America. It operates in two segments, Sirius XM, and Pandora and Off-platform. The company’s Sirius XM segment provides music, sports, entertainment, comedy, talk, news, traffic and weather channels, and other content, as well as podcast and infotainment services on subscription fee basis; and live, curated, and exclusive and on demand programming services through satellite radio systems and streamed through applications for mobile and home devices, and other consumer electronic equipment. This segment also distributes satellite radios through automakers and retailers, as well as its website; podcasts, including true crime, news, politics, music, comedy, sports, and entertainment; and offers location-based services through two-way wireless connectivity, including safety, security, convenience, maintenance and data, remote vehicles diagnostic, and stolen or parked vehicle locator services. In addition, this segment provides music channels on the DISH Network satellite television service as a programming package; Travel Link, a suite of data services that include graphical weather, fuel prices, sports schedule and scores, and movie listings; graphic information related to road closings, traffic flow, and incident data for consumers with in-vehicle navigation systems; real-time weather services in vehicles, boats, and planes; and music programming and commercial-free music services for office, restaurants, and other business. Its Pandora and Off-platform segment operates music, comedy, and podcast streaming platform, which offers personalized experience for listener through computers, tablets, mobile devices, vehicle speakers, and connected devices; and provides advertising services. The company was incorporated in 2013 and is headquartered in New York.